On Raghuram Rajan

How many of you remember when Swamy told everyone that Raghuram Rajan had set a time bomb which will explode in Dec 2016. Many ignorants laughed at him.
Let me expose his deeds naked. No Media will expose him. I can challenge Mr Raghuram Rajan knows it.
1. In 2008 USA was in economical disaster and its main banking system collapsed. At that time Raghuram Rajan was sent to India and at the same time Western Media made this guy a champion and claimed that He predicted 2008 disaster which was bullshit.
2. Till 2013 Raghuram Rajan was well settled and this guy gets post of RBI Governor.
Just after he become Governor, he devalued Indian currency and Rupee started falling. Then citing reasons of Rupee fall he purchased 28 billion USD bonds which helped USA to recover feom disaster.
3 Most surprising fact, He while purchasing 28 billion USD bonds put maturity date as Dec 2016 which is post retirement.
4. Now Indian Banks have to pay this 28 billion USD to USA. Do you know What the amount is ?
1.33 lakh crore and this has to returned till December.
5. Hope you understand the reason of MODI’s visit to USA. Our Foreign Currency Reserves is still 363 billion USD which will help India to recover.
6. But Certainly it is a burden. 28 billion USD is not a small amount.
Hopefully you will understand. Fact is fact.
And that why he doesnot want to continue.
And thats why congress is supporting him.
And thats why true patriots want him to go

— — — — — — — — — — — — — -

Ok, let’s start analyzing the message. It’s not signed. So, it’s written by some miscreant. Who is in a rush, as he/she doesn’t give much importance to English spelling/grammar, formats the message poorly, and doesn’t seem to understand banking basics.

The message’s first accusation:

Western Media made this guy a champion and claimed that He predicted 2008 disaster which was bullshit.

But Rajan indeed predicted the 2008 financial crisis in 2005, at the Jackson Hole, Wyoming summit. Here’s a link to his speech, made on Aug 27, 2005. His working paper on the topic, published in Nov 2005.

Till 2013 Raghuram Rajan was well settled and this guy gets post of RBI Governor.

What does that supposed to mean? That the RBI Governor shouldn’t be a well-settled guy?

Just after he become Governor, he devalued Indian currency and Rupee started falling. Then citing reasons of Rupee fall he purchased 28 billion USD bonds which helped USA to recover feom disaster.

Huh, no. The finance crisis happened in 2008. The above event happened in 2013. And Rajan didn’t purchase $28 billion worth of USD bonds. It’s so comical the way the message puts it. If Rajan had bought bonds, he would have given money then to buy them, and US would be repaying the money (with interest) when the bonds are redeemed.

Actually, what Rajan did in 2013 was to stabilize the Indian Rupee which was in a free fall then. He introduced a deposit scheme for Indian workers abroad, which attracted about $20 billion dollars. Here’s a good post on what happened, and what the (supposed) issue is.

So, it’s just another baseless, false, ad hominem attack on Rajan. Please ignore such messages. Don’t forward them.

Like what you read? Give Break The Chain a round of applause.

From a quick cheer to a standing ovation, clap to show how much you enjoyed this story.